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Description

Description

Covered in this report

Third-party services such as Just Eat and Deliveroo will continue to drive growth in the UK’s home delivery and takeaway market. The convenience of quick meals and more menu choices continues to attract affluent diners.


The rollout of dark kitchens (takeaway-only kitchens capable of servicing multiple restaurant operators) beyond major cities and in to large towns has encouraged more consumers to use thirdparty services to order takeaway food. Virtual brands (online-only brands sold exclusively through dark kitchens) offer operators the opportunity to extend their current service online, or start afresh.

“Brits are turning to third-party services to order home delivery/takeaway food, attracted by convenience and the ever-growing range of options. Virtual brands operating through dark kitchens will be crucial to expanding reach and order frequency, although operators must be upfront with consumers about how and where food is prepared in order to retain trust.”
– Lauren Ryan, Leisure Analyst

This Report will cover the following areas:

  • Conscious consumption
  • The next generation of frictionless food delivery

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Convenience culture continues
              • Aggregators and delivery services converge
                • Rising restaurant costs forcing operators online
                  • Figure 1: NMW and NLW rates, by age, April 2016-April 2020
                • Dark kitchens booming
                  • Companies and brands
                    • Takeaway.com wins competitive bid for Just Eat
                      • Amazon leads Deliveroo’s latest investment round
                        • Click-and-collect services launched by key players
                          • Delivery’s eco-impact on the agenda
                            • Major supermarkets and C-stores partner with third-party apps
                              • Competition heats up for third-party platforms
                                • The consumer
                                  • Takeaway market propped up by affluent consumers
                                    • Figure 2: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
                                  • Young urbanites crucial
                                    • Third-party usage increases
                                      • Direct ordering declines
                                        • Figure 3: Takeaway/home delivery purchase channel, November 2018 and November 2019
                                      • Taste most important restaurant choice driver
                                        • Figure 4: Home delivery and takeaway purchase drivers, November 2019
                                      • Just Eat holds on to first place
                                        • Uber Eats takes second over Deliveroo
                                          • Figure 5: Third-party services used to order home delivery/takeaway food, November 2018 and November 2019
                                        • Half of diners open to ‘dark kitchens’
                                          • Figure 6: Willingness to order from dark kitchens, November 2019
                                        • Data sharing a risk for half of takeaway diners
                                          • Novel delivery tech needs promoting
                                            • Figure 7: Attitudes towards delivery technology, November 2019
                                          • Nearly half interested in adding supermarket items
                                            • Subscription services wanted
                                              • Figure 8: Attitudes towards delivery value, November 2019
                                            • What we think
                                            • Issues and Insights

                                              • Conscious consumption
                                                • The facts
                                                  • The implications
                                                    • The next generation of frictionless food delivery
                                                      • The facts
                                                        • The implications
                                                        • The Market – What You Need to Know

                                                          • Convenience culture continues
                                                            • Third-party apps expand their reach
                                                              • Aggregators and delivery services converge
                                                                • Rising restaurant costs forcing operators online
                                                                  • Dark kitchens booming
                                                                  • Market Drivers

                                                                    • Convenience culture continues
                                                                      • Figure 9: Participation in purchasing home delivery/takeaway food, by employment and parental status, November 2019
                                                                    • Affluent diners fuelling growth
                                                                      • Figure 10: Trends in how respondents would describe their financial situation, December 2018-December 2019
                                                                    • Third-party apps expand their reach
                                                                      • Hybrid strategy: aggregators and delivery services converge
                                                                        • Figure 11: Home delivery/takeaway purchase channel, November 2018 and November 2019
                                                                      • Rising restaurant costs forcing operators online
                                                                        • Employee pay goes up
                                                                          • Figure 12: NMW and NLW rates, by age, April 2016-April 2020
                                                                        • Dark kitchens a savvy solution
                                                                        • Companies and Brands – What You Need to Know

                                                                          • Takeaway.com wins competitive bid for Just Eat
                                                                            • Amazon leads Deliveroo’s latest investment round
                                                                              • Click-and-collect services launched by key players
                                                                                • Delivery’s eco-impact on the agenda
                                                                                  • Alternative delivery methods in the pipeline
                                                                                    • Major supermarkets and C-stores partner with third-party apps
                                                                                      • Competition heats up for third-party platforms
                                                                                      • Key Players – Online Ordering

                                                                                          • Just Eat
                                                                                            • Deliveroo
                                                                                              • Uber Eats
                                                                                              • Competitive Strategies – Online Ordering

                                                                                                • Consolidation
                                                                                                  • Amazon under pressure from CMA during Deliveroo deal
                                                                                                    • Takeaway.com wins competitive bid for Just Eat
                                                                                                      • Digital activity
                                                                                                        • Uber combines Eats into core ridesharing app
                                                                                                          • ‘Click-and-collect’ services launched by Deliveroo and Uber Eats
                                                                                                            • Deliveroo introduces dynamic pricing charges
                                                                                                              • Media activity
                                                                                                                • Just Eat launches first global campaign under McCann
                                                                                                                  • Just Eat takes over Love Island sponsorship from Uber Eats
                                                                                                                    • Deliveroo ad banned for misleading consumers
                                                                                                                      • Distribution changes
                                                                                                                        • Deliveroo forms new grocery delivery arm
                                                                                                                          • Deliveroo announces plans to expand reach across the UK
                                                                                                                            • Just Eat launches delivery services as part of new hybrid strategy
                                                                                                                              • Deliveroo adds events services to corporate operations
                                                                                                                                • Uber Eats moves into convenience sector with Costcutter
                                                                                                                                  • Uber Eats launches dark kitchens accelerator
                                                                                                                                    • Deliveroo focuses on healthy virtual brands
                                                                                                                                    • Launch Activity and Innovation

                                                                                                                                      • Delivery’s eco-impact on the agenda
                                                                                                                                        • Deliveroo trials food container reuse service
                                                                                                                                          • Spar and Morrisons join food waste app Too Good To Go
                                                                                                                                            • Alternative delivery methods in the pipeline
                                                                                                                                              • Co-op launches e-bike delivery service
                                                                                                                                                • Google’s sister company explores UK drone delivery
                                                                                                                                                  • Food retailers hungry for a slice
                                                                                                                                                    • Major supermarkets and C-stores partner with third-party apps
                                                                                                                                                      • Kellogg’s offsets sales decline with Deliveroo partnership
                                                                                                                                                        • Competition heats up for third-party platforms
                                                                                                                                                          • Crosstown Doughnuts founder launches delivery platform
                                                                                                                                                            • Online coffee marketplace app COFE set to launch in London
                                                                                                                                                              • Traditional operators get with the times
                                                                                                                                                                • Just Eat wins Greggs and McDonald’s
                                                                                                                                                                  • Toby Carvery launches delivery roast dinners
                                                                                                                                                                  • Brand Research

                                                                                                                                                                      • Brand map
                                                                                                                                                                        • Figure 13: Attitudes towards and usage of selected brands, December 2019
                                                                                                                                                                      • Key brand metrics
                                                                                                                                                                        • Figure 14: Key metrics for selected brands, December 2019
                                                                                                                                                                      • Brand attitudes: Market leader Just Eat deemed good value for money and high quality
                                                                                                                                                                        • Figure 15: Attitudes, by brand, December 2019
                                                                                                                                                                      • Brand personality: Uber Eats’ ethics under question
                                                                                                                                                                        • Figure 16: Brand personality – macro image, December 2019
                                                                                                                                                                      • Just Eat seen as reliable while Deliveroo deemed cool
                                                                                                                                                                        • Figure 17: Brand personality – micro image, December 2019
                                                                                                                                                                      • Brand analysis
                                                                                                                                                                        • Just Eat’s appeal down to value for all
                                                                                                                                                                          • Figure 18: User profile of Just Eat, December 2019
                                                                                                                                                                        • Boosting awareness key to unlocking Uber Eats’ potential
                                                                                                                                                                          • Figure 19: User profile of Uber Eats, December 2019
                                                                                                                                                                        • Deliveroo’s youthful urban skew key to cool factor
                                                                                                                                                                          • Figure 20: User profile of Deliveroo, December 2019
                                                                                                                                                                      • The Consumer – What You Need to Know

                                                                                                                                                                        • Takeaway market propped up by affluent consumers
                                                                                                                                                                          • Young urbanites crucial
                                                                                                                                                                            • Third-party usage increases
                                                                                                                                                                              • Direct ordering declines
                                                                                                                                                                                • Taste most important restaurant choice driver
                                                                                                                                                                                  • Just Eat holds on to first place
                                                                                                                                                                                    • Uber Eats takes second over Deliveroo
                                                                                                                                                                                      • Half of diners open to ‘dark kitchens’
                                                                                                                                                                                        • Nearly half interested in adding supermarket items
                                                                                                                                                                                        • Frequency of Use

                                                                                                                                                                                          • Some consumers exited the market…
                                                                                                                                                                                            • Figure 21: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
                                                                                                                                                                                          • …while the remaining increased order frequency
                                                                                                                                                                                            • Figure 22: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
                                                                                                                                                                                          • Consumer base dominated by affluent, young urbanites
                                                                                                                                                                                            • Convenience is key
                                                                                                                                                                                              • Figure 23: Participation in purchasing home delivery/takeaway food, by employment and parental status, November 2019
                                                                                                                                                                                          • Purchase Channels

                                                                                                                                                                                            • Third-party usage increases…
                                                                                                                                                                                              • …while direct purchasing declines
                                                                                                                                                                                                  • Figure 24: Takeaway/home delivery purchase channel, November 2018 and November 2019
                                                                                                                                                                                                • Three quarters use a single method
                                                                                                                                                                                                  • Figure 25: Repertoire analysis of takeaway/home delivery ordering methods, November 2019
                                                                                                                                                                                              • Direct Ordering Methods

                                                                                                                                                                                                • Phone most popular direct method
                                                                                                                                                                                                  • Figure 26: Direct ordering methods, November 2019
                                                                                                                                                                                                • Two thirds prefer to use the same restaurants repeatedly
                                                                                                                                                                                                  • Figure 27: Delivery ordering preference, November 2019
                                                                                                                                                                                              • Restaurant Choice Drivers

                                                                                                                                                                                                • Quality reigns supreme
                                                                                                                                                                                                    • Figure 28: Home delivery and takeaway purchase drivers, November 2019
                                                                                                                                                                                                  • Young city dwellers care more for social impact
                                                                                                                                                                                                    • Health not as important for takeaways
                                                                                                                                                                                                    • Third-party Services

                                                                                                                                                                                                      • Just Eat holds the crown but loses share
                                                                                                                                                                                                          • Figure 29: Third-party services used to order home delivery/takeaway food, November 2018 and November 2019
                                                                                                                                                                                                        • Customisation will be key to capturing the youth market
                                                                                                                                                                                                          • Uber Eats moves into second place
                                                                                                                                                                                                              • Figure 30: Third-party services used to order takeaways/delivery food, by demographics, November 2019
                                                                                                                                                                                                            • Deliveroo grows consumer base
                                                                                                                                                                                                              • Majority use only one app
                                                                                                                                                                                                                • Figure 31: Repertoire analysis of number of third-party services used, November 2019
                                                                                                                                                                                                              • Apps confusing for many
                                                                                                                                                                                                                • Figure 32: Attitudes towards third-party services, November 2019
                                                                                                                                                                                                            • Third-party Service Choice Drivers

                                                                                                                                                                                                              • User experience and cost paramount
                                                                                                                                                                                                                • Figure 33: Third-party service choice drivers, November 2019
                                                                                                                                                                                                              • Promotions important for cash-strapped consumers
                                                                                                                                                                                                              • Willingness to Order from Dark Kitchens

                                                                                                                                                                                                                • Half of diners open to ‘dark kitchens’
                                                                                                                                                                                                                    • Figure 34: Willingness to order from dark kitchens, November 2019
                                                                                                                                                                                                                  • Operators get smart with in-house dark kitchens
                                                                                                                                                                                                                    • Hygiene standards under the microscope
                                                                                                                                                                                                                    • Attitudes towards Delivery Technology

                                                                                                                                                                                                                      • Personal data a concern for nearly half
                                                                                                                                                                                                                        • Figure 35: Attitudes towards delivery technology, November 2019
                                                                                                                                                                                                                      • Voice control ordering far from being accepted
                                                                                                                                                                                                                        • A third open to drone delivery
                                                                                                                                                                                                                        • Attitudes towards Delivery Value

                                                                                                                                                                                                                          • Nearly half interested in adding supermarket items
                                                                                                                                                                                                                            • The present: grocery items direct to door
                                                                                                                                                                                                                              • The future: combining orders from different operators
                                                                                                                                                                                                                                  • Figure 36: Attitudes towards delivery value, November 2019
                                                                                                                                                                                                                                • The price must be right
                                                                                                                                                                                                                                  • Everyday low prices
                                                                                                                                                                                                                                    • Limited-time-only deals
                                                                                                                                                                                                                                      • Delivery-only menu pricing
                                                                                                                                                                                                                                        • Dynamic pricing
                                                                                                                                                                                                                                          • Young urbanites want delivery subscriptions
                                                                                                                                                                                                                                              • Figure 37: CHAID analysis of consumers open to fixed-price home delivery/takeaway subscriptions, November 2019
                                                                                                                                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                                                              • Abbreviations
                                                                                                                                                                                                                                                • Consumer research methodology

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